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08.09.202501:04:25UTC+00Japan Bank Lending Growth Above Forecasts

In August 2025, bank lending in Japan increased by 3.6%, marking an acceleration from a 3.2% increase in July and surpassing market expectations of a 3.2% growth. This represents the most rapid growth rate observed in over four years. The total outstanding loans across major banks, regional banks, and shinkin banks amounted to ¥646.1 trillion. Regional banks led the way with a 4% increase, followed closely by a substantial 3.8% rise at major banks. Shinkin banks, which are local cooperative lenders serving small businesses and communities, experienced a more modest increase of 1.3%, indicating subdued credit demand in certain areas of the economy.

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